Industry NewsMortgage

Economies are tanking everywhere

Commentary: Expect commodity prices to fall, dollar to strengthen

The immediate credit market response to a wave of new economic data is as-was, lowest-fee mortgages 6.5 percent, 10-year T-note just under 4 percent. However, last week marked very significant change: Economic decline here and in Europe is now beyond argument, and the decline is fighting inflation for the Fed and the European Central Bank, neither of which needs to raise its rate further. Evidence: The twin surveys by supply managers ("ISM") in late June showed manufacturing at break-even (50.2), and a surprising slide in the service sector (to 48.2 from 51.7). Friday's much-anticipated payroll report had a loss of 59,000 jobs in June, and about that many lost in revisions of prior months. The ominous number, new claims for unemployment insurance, broke upward to 404,000 last week, the first time above 400K since the Katrina spike, and a recession level. The stock market is obviously processing tough news, led by auto sales: Sales collapsed 18.3 percent from Jun...

Comments